The thing most of you are ignoring is the fact that back in January 90% of bitcoins were bring held by speculators. Speculators that believed more gambling operators and websites would start accepting the currency and turn it into a legitimate currency for online transactions. The other 10% spent it on (mostly) illegal gambling and drugs.

Come March 98% of those holding bit coins are purely speculating, and only those from back in January and prior actually believe in the currency. Most of those that "joined" bitcoin since January did so purely to make a profit, without believing, or caring, whether the currency was viable or not. These are the people selling now.

Bitcoin will drop to $20 and will rise back up to $40-$50 based on some of the "unbelievers" becoming converts and the rest suffering from "under performing stock syndrome".

Hopefully, when/if (and I say if because this crash has damaged credibility in a big way), bitcoins get accepted by some major gambling operators along with other online sites, then the currency will again grow organically. but don't hold your breath.